Patrick Haraden’s Post

Has the insurance industry reached an inflection point? Worldwide uncertainties, including macroeconomic volatility, have increased in frequency and intensity. Many firms have responded to this evolving landscape by embracing transformative measures to minimize losses. Experts from across S&P Global - S&P Global Market Intelligence, S&P Global Ratings, and S&P Dow Jones Indices - will discuss such topics as: * State of the industry in the era of persistently high interest rates and inflation * Industry risk-appetite amid high reinsurance costs and natural catastrophe losses * Ongoing sharp divergence in underwriting results between personal and commercial P&C lines * M&A, private equity, sidecars, and the offshoring of annuities * Commercial real estate mortgage exposure with Christopher Winter, Tim Zawacki, Carmi Margalit, CFA, and John Iten https://lnkd.in/eqbMkEn4 #insurance

Rising investment income, a growing economy and a (thus far) relatively mild 2024 wind season have helped keep commercial insurance market conditions largely favorable to buyers. Despite this, there is still an underlying sense of fragility in both the economy and the insurance marketplace.  Read our latest Lockton Market Update https://lnkd.in/g99qyVDy

⚠️𝗜𝗻𝘀𝘂𝗿𝗲𝗿𝘀 𝗮𝗿𝗲 𝗳𝗮𝗰𝗶𝗻𝗴 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴𝗹𝘆 𝗵𝗲𝗶𝗴𝗵𝘁𝗲𝗻𝗲𝗱 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 𝗮𝘀 𝘄𝗲𝗹𝗹 𝗮𝘀 𝘂𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆 𝗮𝗻𝗱 𝘀𝗵𝗶𝗳𝘁𝘀 𝗶𝗻 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗱𝘆𝗻𝗮𝗺𝗶𝗰𝘀 𝗱𝗿𝗶𝘃𝗲𝗻 𝗯𝘆 𝗲𝘅𝘁𝗿𝗲𝗺𝗲 𝘄𝗲𝗮𝘁𝗵𝗲𝗿, 𝗿𝗶𝘀𝗶𝗻𝗴 𝘁𝗲𝗺𝗽𝗲𝗿𝗮𝘁𝘂𝗿𝗲𝘀, 𝗮𝗻𝗱 𝗲𝘃𝗼𝗹𝘃𝗶𝗻𝗴 𝗿𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸𝘀. Not only must life insurers adjust their underwriting practices to account for emerging 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗶𝘀𝗸𝘀, they must also reevaluate their investment strategies to navigate these unprecedented challenges to ensure business continuity. ❓Should life insurers dynamically adjust to the changing risk profile of their liabilities, take proactive steps that pre-empts shifts in risk exposure, or wait and reactively respond? In our latest blog, Bronwyn Claire explores the interdependency between shifting liabilities and assets from a life insurer’s perspective and how they can adjust their investment strategies to optimize business performance and ensure portfolio resilience.   𝗥𝗲𝗮𝗱 𝗵𝗲𝗿𝗲👉 https://lnkd.in/eu3-4yKq

Quick fact -- U.S. property insurance rates continued their upward trend for another quarter! That makes 25 straight quarters of increase, although there's optimism as future increases are projected to taper off, which I clearly heard during my recent meeting with Lloyd’s underwriters. Reach out if you want to discuss how international capacity may provide more capacity and stability. Check out Lockton s Market Update for more key insights:

Despite continuing concerns about natural catastrophe losses, social inflation, and geopolitical uncertainty, insurers are reporting strong returns and are increasingly competing for business across several lines—the result: is greater stability and predictable renewal outcomes. For buyers, it’s essential to continue to challenge existing thinking, rather than simply renewing insurance programs as is. Now is the time to revisit past assumptions, reexamine limit adequacy, and capitalize on safety and risk mitigation investments. https://lnkd.in/enZ3iE7f

This year, the insurance industry is expected to see another round of adjustments in pricing and premiums as insurers continue to balance risks and economic factors. Rising Costs: Heightened reconstruction expenses, inflation, and reinsurance rate hikes contribute to this uptick. Impact: These changes may influence policyholders and insurers alike, necessitating a proactive approach to managing expectations and strategies. Insight: Understanding the underlying factors can empower us to navigate these changes strategically, ensuring sustainable solutions for all stakeholders. By fostering connections through human interaction, data, and technology, we can help navigate complex markets and meet customers' needs. We dive more into these insights and trends in our upcoming market report: Stay tuned! #MarketTrends #PricingandPremiums #2024Updates #RiskManagement

Lockton's Q4 update is out and commercial insurers continued to report strong returns through the second quarter of 2024. The P&C marketplace is being buoyed by rising investment income, a growing economy and a (thus far) relatively mild 2024 wind season. This has helped keep conditions largely favorable to buyers across most lines of coverage.  Check out my content page for more information and the full report. https://lnkd.in/eEKRUddM #Lockton #Commercialinsurance

Rising investment income, a growing economy and a (thus far) relatively mild 2024 wind season have helped keep commercial insurance market conditions largely favorable to buyers. Despite this, there is still an underlying sense of fragility in both the economy and the insurance marketplace. Any large, unexpected event could bring an end to the stable and predictable market that many buyers currently enjoy. This environment has sparked interest in alternative risk strategies, which can offer significant value for organizations seeking to more effectively manage costs and volatility. For buyers, it's essential to continue to challenge existing thinking, rather than simply renewing insurance programs as is. Now is the time to revisit past assumptions, reexamine limit adequacy, and capitalize on safety and risk mitigation investments. https://lnkd.in/ej-3zqB2

[NEW RESEARCH] Looking ahead through 2024, insurers are mindful of market volatility, but are ready to put excess cash and liquidity to work, whether through optimizing all fixed income allocations, or continuing the push into private markets. Cue the spotlight on: private debt. Read more insights from Mercer and Oliver Wyman’s 2024 Global Insurance Survey: https://bit.ly/454bEjw #Insurance #investment #privatemarkets

[NEW RESEARCH] Looking ahead through 2024, insurers are mindful of market volatility, but are ready to put excess cash and liquidity to work, whether through optimizing all fixed income allocations, or continuing the push into private markets. Cue the spotlight on: private debt. Read more insights from Mercer and Oliver Wyman’s 2024 Global Insurance Survey: https://bit.ly/49ZJ9Ew #Insurance #investment #privatemarkets